How To Achieve business credit lines that actually work like the other 49% of Companies

OVERVIEW – Information on business credit lines in Canada. What access to a commercial line of credit means to your company


Business credit lines
in Canada are often a solution to one of the biggest challenges business owners and financial mangers face – namely ‘ cash flow shortfalls’.

Canada’s leading bank recently advised that over 51% of business has those cash flow challenges. So your company wants to be in that other 49% and a commercial line of credit can be the answer, so let’s dig in.

There’s no greater lesson in working capital financing than managing your way through finance shortfalls. As simple as the solution is the business owner/manager will surely agree with one of our mentors who once said ‘ tuition is very high in the school of experience’.

While the Canadian banks tout support of the SME COMMERCIAL finance sector the reality is that bank credit lines are tough to get, and not everyone understands there are alternatives.

We always; point out that the need for any external financing can be eliminated though by some sound internal mgmt (PHYSICIAN HEAL THYSELF?!) Business Credit Lines– that includes improving a/r and inventory turns, watching who you extend credit to, and matching finance options to finance needs . For example utilize equipment financing to finance long term fixed asset needs.

Often the issue of ‘ seasonality’ or what we could call temporary bulges in financing needs is the root of the problem. Enter the business credit line, allowing you to draw on business assets via a revolving facility.

Companies in early stage have a major challenge in accessing credit lines, the main reason being they don’t have the proven profits, debt structure, and cash flow ratios required. They then insist on outside personal assets which owners may be unwilling or unable to provide.

ALTERNATIVES? They include proven financing solutions such as –

Factoring / Confidential Receivable Finance

Secured inventory financing

Monetizing SR ED tax credits via a cash flow loan

Working Capital Term Loans

Sale leaseback strategies

Non bank ABL asset based lines of credit

P O / Contract Financing

Royalty Financing

Critical to achieving business line of credit success is your ability to present your case properly. This may be done by the owner, financial manager, or an experienced business financing advisor.

If you are unable to present your year end financials, an interim balance sheet and income statement, as well as a cash flow forecast you are already behind the 8 ball. If you want to really impress the bank or commercial finance company be armed with aged payable, receivables, and possibly a list of fixed assets.

We’ve provided everyday solutions to business credit needs. If your business is one of the 51% that needs some form of traditional or alternative cash flow financing via business credit seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you to ‘ think big’ on fixing the financing conundrum.

Author: Stan Prokop – 7 Park Avenue financial.
Business financing for Canadian Firms , specializing in working capital, cash flow, asset based financing , Equipment Leasing , franchise finance and Cdn. Tax Credit Finance . Founded 2004 – Completed in excess of 90 Million $ of financing for Canadian corporations . Info /Contact :

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Canadian Business Financing